California motorists will face higher gas prices starting Wednesday as the state's excise tax rises by 2.2 cents per gallon, bringing the total to 63.4 cents. The increase, tied to inflation adjustments under a 2017 law, comes as California already has the highest average gas prices in the U.S. at $5.58 per gallon, according to AAA. Republicans, including Rep. David Valadao, are urging Gov. Gavin Newsom to suspend the hike, citing financial strain on residents. The total tax burden, including sales tax and local fees, reaches about $1.15 per gallon.
The tax increase is part of a 2017 transportation funding law, which voters upheld in 2018. Critics argue the funds are mismanaged, pointing to California's poor road conditions despite high fuel taxes. Supporters say the revenue supports infrastructure projects. The state imports about 30% of its oil from the Strait of Hormuz, a volatile region affecting global supply.
California's gas prices are influenced by environmental fees, supply chain constraints, and geopolitical factors like the Iran war. The state's excise tax is indexed to inflation, leading to annual increases. Republicans argue the policy worsens affordability, while Democrats emphasize infrastructure funding.